3Q 2020 Global ISG Index™

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THIRD QUARTER 2020
Managed Services and
As-a-Service Market Insights
October 8, 2020
HOSTED BY: SUMEET JAIN, GOLDMAN SACHS

Covering the State of the Managed Services &
As-a-Service Industry for the Global Commercial Market
Welcome
to the 72nd Quarterly
Stanton Jones
Director & Principal
Analyst ISG Research
Steve Hall
Partner &
President ISG
Kathy Rudy
Chief Data &
Analytics Officer
David Lewis
Partner, Manufacturing
Practice Lead

3ISG Confidential. © 2020 Information Services Group, Inc. All Rights Reserved.
3Q20
At a Glance
3Q20
ACV ($B)
3Q Y/Y
Change
2020 YTD
ACV ($B)
2020 YTD
Change
Global Commercial
Combined Market
14.6 3.0% 43.9 4.4%
By Type
Managed Services 6.6 -4.8% 19.5 -6.3%
As-a-Service 8.0 10.5% 24.4 14.8%
By Region
Americas Combined 8.0 3.2% 23.2 9.2%
EMEA Combined 4.6 9.4% 14.3 2.6%
Asia Pacific Combined 2.0 -10.0% 6.4 -6.9%
Scorecard
Global Sourcing Industry
Slowly recovering from Q2 trough
Q3 Combined Market
Up 3%, to $14.6 billion, second-best
quarter ever behind 1Q20
Managed Services up 10%
Sequentially on increase in mega-deals,
contract restructurings, banking demand
and industry-specific BPO
As-a-Service up 10.5% Y/Y
On strong IaaS demand fueled by
accelerated digital transformation

3Q20
4.4%
2020 YTD
56%
2020 YTD
Global Commercial Sector
Quarterly Trends
● Combined Market up 3% with its second-best quarterly result ever
● Despite COVID overhang, Managed Services surpassed
expectations, up 10% Q/Q due to increased activity in mega-deals,
contract restructurings (up 50+%), BFSI (up 50+%) and industry-
specific BPO (up 90+%)
Global Commercial Sector ACV by Function ($B)Combined Market Quarterly ACV ($B)
6.9 7.2 6.4 6.9 6.7 7.1 7.0 7.0 6.8 6.0 6.6
5.4
6.2
6.5 6.5 7.4 6.6 7.2 7.1 8.5
8.0
8.0
12.3
13.4 12.9 13.4
14.1 13.7 14.2 14.1
15.3
14.0
14.6
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
As-a-Service
Managed Services
11.96
6.12
4.28
16.25
14.83
6.44
4.87
15.92
17.77
6.65
3.82
15.65
IaaS
SaaS
BPO
ITO
2020 YTD
2019 YTD
2018 YTD
As-a-Service
ACV
Combined
Market ACV
Managed
ServicesACV
As-a-Service
Market Ratio
14.8%
2020 YTD
2020 YTD
-6.3%

3Q20
the
ISG15 Service & Technology Provider Standouts – GLOBAL
Our Contracts Knowledgebase™ is used to determine placements based
on the annual value of commercial contracts awarded in the past 12 months.
The Big 15 The Building 15 The Breakthrough 15 The Booming 15
Revenues > $10B Revenues $3B-$10B Revenues $1B-$3B Revenues <$1B
Managed Services Market
Accenture
Atos
Capgemini
Cognizant
DXC Technology
IBM Global Services
Infosys
NTT Data
TCS
Amdocs
Bechtle
Computacenter
Concentrix *
Genpact
HCL
OptumInsight
Tech Mahindra
T-Systems
Wipro
Digital China *
EPAM Systems
JLL
LTI
Mindtree
Mphasis
Sutherland
TietoEvry
Unisys
Virtusa
Birlasoft
CSG Systems
Ensono
EXL
HGS *
Persistent Systems
As-a-Service Market
Alibaba
Amazon Web Services
Google
Microsoft
Salesforce
Tencent
Adobe Systems
Equinix
ServiceNow
VMware *
Workday
Allscripts
Autodesk
Digital Realty
Palo Alto Networks *
Rackspace *
Atlassian
Coresite *
Crowdstrike *
CyrusOne
DocuSign
RingCentral
Slack *
Veeva Systems
Zoom Video *
* New to leaderboard in 3Q20 Providers in alphabetical order; no rankings implied. Revenues sourced from D&B and individual company financial fillings.

3Q20
Americas Commercial Sector
Quarterly Trends
● 3Q20 Combined Market posted best quarterly result ever, up 3.2%
Y/Y due to strong marks in IaaS and SaaS
● Managed Services declined 7% Y/Y versus a very difficult
comparison to 3Q19 but was up 26% sequentially due to strength
in BFSI and industry-specific BPO awards
Combined Market Quarterly ACV ($B) Americas Commercial Sector ACV by Service Type ($B)
3.8
3.1 3.1
3.7 3.2 2.9
3.9
3.0 3.4 2.9
3.6
2.9
3.3 3.4
3.4 3.9
3.5
3.9
3.9
4.6
4.3
4.4
6.7
6.4 6.5
7.1 7.1
6.4
7.8
6.9
8.0
7.2
8.0
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
As-a-Service
Managed Services
5.67
3.81
2.39
7.69
7.29
3.98
2.44
7.56
8.94
4.32
2.42
7.53
IaaS
SaaS
BPO
ITO
2020 YTD
2019 YTD
2018 YTD
9.2%
2020 YTD
57%
2020 YTD
As-a-Service
ACV
Combined
Market ACV
Managed
ServicesACV
As-a-Service
Market Ratio
17.7%
2020 YTD
2020 YTD
-0.4%

3Q20
Asia Pacific Commercial Sector
Quarterly Trends
● Combined Market ACV fell 10% Y/Y due to continued soft results
in Managed Services
● Managed Services ACV declined over 40% due to lack of large
transactions across the region
Combined Market Quarterly ACV ($B) Asia Pacific Commercial Sector ACV by Service Type ($B)
3.00
0.67
0.39
1.44
3.79
0.74
0.38
1.98
4.33
0.70
0.20
1.19
IaaS
SaaS
BPO
ITO
2020 YTD
2019 YTD
2018 YTD
0.50
0.84
0.48
0.70 0.71
1.00
0.65
0.41 0.52 0.53
0.34
1.05
1.29
1.32
1.32
1.50
1.48
1.54
1.48
1.77 1.61
1.63
1.55
2.13
1.80
2.02
2.21
2.48
2.19
1.89
2.29
2.14
1.97
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
As-a-Service
Managed Services
78%
2020 YTD
Managed
ServicesACV
Combined
Market ACV
As-a-Service
ACV
As-a-Service
Market Ratio
11.0%
2020 YTD
2020 YTD
-41.2%
2020 YTD
-6.9%

3Q20
EMEA Commercial Sector
Quarterly Trends
● Combined Market ACV was up over 9% Y/Y with equal contributions
by both Managed Services and As-a-Service domains
● 3Q20 Managed Services up both Q/Q and Y/Y as most major
markets accelerated led by U.K.
Combined Market Quarterly ACV ($B) EMEA Commercial Sector ACV by Service Type ($B)
3.29
1.65
1.49
7.12
3.75
1.73
2.05
6.38
4.50
1.64
1.21
6.93
IaaS
SaaS
BPO
ITO
2020 YTD
2019 YTD
2018 YTD
43%
2020 YTD
Managed Services
ACV
Combined
Market ACV
As-a-ServiceACV
As-a-Service
Market Ratio
12.1%
2020 YTD
2020 YTD
-3.6%
2.6%
2020 YTD
2.6
3.2
2.8 2.5 2.8
3.3
2.4
3.5
2.9 2.6 2.6
1.5
1.7
1.8
1.7
2.0
1.6
1.8
1.8
2.1
2.0 2.0
4.1
4.9
4.6
4.2
4.8 4.9
4.2
5.3
5.0
4.6 4.6
1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20
As-a-Service
Managed Services

3Q20
2020
YTD
Growth
Business
Services
Retail&
Consumer
PackagedGoods
Energy
Financial
Services
Healthcare
& Pharma
Manufacturing
Telecom
& Media
Travel,
Transport
Leisure
$8.3 ACV $5.4B ACV $2.8B ACV $9.1B ACV $4.1B ACV $6.5B ACV $4.0B ACV $3.8B ACV
Combined Market
Managed Services
As-a-Service
Americas
EMEA
Asia Pacific
Global Commercial Sector Industry Award Trends
12%
24%
19%
17%
6%
-6%
11%
13%
11%
16%
10%
2%
12%
11%
24%
8%
10%
14%
6%
21%
30%
-3%
-13%
-19%
5%
5%
14%
5%
-3%
-3%
1%
13%
6%
7%
-4%
-34%
13%
-16%
-34%
-6%
-17%
-22%
4%
14%
25%
-8%
-5%
-23%

3Q20 ISG Index™
Proprietary and Confidential. No part of this document may be reproduced in any form or
by any electronic or mechanical means, including information storage and retrieval devices
or systems, without prior written permission from Information Services Group, Inc.
THIRD QUARTER 2020
Trends in Smart Manufacturing
“COVID-19 will
accelerate investment
in smart manufacturing
technology and services.“
Partner,
Manufacturing
Practice Lead
David Lewis

3Q20
COVID-19 Pandemic
COVID-19 Impact on Smart Manufacturing
Disruptive Trends to Operations and Technology
LTE/5G
Near-real-time Networks
for Connected Factories
Digital Twins
To optimize
the product lifecycle
Impact of Pandemic
Aligned Applied Analytics
Digital Production & Supply
Chain Transformation
Virtual & Augmented Reality
Applied in Maintenance
& Employee Training
Post Pandemic Recovery
Acceleration of smart manufacturing
and supply chain technology
People
Losing Jobs
Manufacturing
Shutdowns
Unmade/
Unshipped Products

3Q20
Post-COVID Trends
Location Dependent Solutions
Shifting to cloud & As-a-Service solutions
Business Resiliency, Flexibility and Efficiency
Cybersecurity
Is essential as hackers continue to try to
access Manufacturing Technology
Supply Chains Reconfigure
Back to U.S.,
European
& other
regional
models
Alternative Sources
Products & raw
materials to avoid
shortages
Cybersecurity
Cloud
Internet of Things (IoT)
Machine Vision
IOT Platforms
Smart Manufacturing
Reduced Costs, Improved Operations
and Customer Experience

3Q20
Opportunities for Providers
Key Technologies
Focus of Manufacturing Industry investment
New Operating Model
Operating Model (“way of working”)
Digital
Factory &
Supply Chain
Smart
Connected
Products
Digital
Platforms /
Backbone
Digital
Products
& Services
Artificial
Intelligence
Cloud
Automation
Cost
Optimization,
Manage & Govern
DevOps
Cybersecurity
Internet of
Things (IoT)
Virtual/
Augmented
Reality
5G Network
Technology
Percentage of Manufacturers
Currently Using
Industry 4.0 Technologies

3Q20 ISG Index™
Proprietary and Confidential. No part of this document may be reproduced in any form or
by any electronic or mechanical means, including information storage and retrieval devices
or systems, without prior written permission from Information Services Group, Inc.
THIRD QUARTER 2020
Director &
Principal Analyst
ISG Research
Cybersecurity Opportunities
for the IT Services Market Stanton Jones
Insider 3Q20 ISG Index™

3Q20
57.2%
55.2%
54.9%
54.2%
54.2%
53.9%
53.5%
52.9%
52.2%
52.2%
52.2%
51.5%
Network
Security
Fraud Prevention
& Payment Security
Web
Security
Database
Security
Business
Continuity
Data Center
Security
Email
Security
Retaining
Staff
Cloud
Security
Mobile
Endpoint Security
Application
Security
Training &
Developing Staff
ICT Strategic Challenges
The Cyber Challenge, Accelerated by the Pandemic
A Vast Increase in Remote Workers
Creates massive opportunities for a cyberattack infiltration
Where Cyberattacks Originate
External attacks are only part of the problem.
Half of all cyberattacks are due to human error
Dramatic Spike in Cyberattacks
Fear and insecurity have caused a dramatic
spike in phishing and ransomware attacks
Companies Need A
New Cybersecurity Operating Model
Multi-tenant systems, industry-specific cyber
talent and threat-based intelligence, all at scale2020, DataDriven, an ISG Research Partner, n=297

3Q20
Cybersecurity: A Market Taxonomy
Security Services
Security Solutions
Identity and Access
Management Solutions
Data Leakage and
Loss Prevention Solutions
The Talent Gap
Cyber Security Solutions & Services
StrategicTechnical Managed
Cybersecurity Jobs
Will Be Available
But Unfilled By 2021
An Estimated

3Q20
Seven Characteristics of a Successful Managed Security Services Provider
Experts In Cloud-native
Technology Stack
Apply Agile
Principles To Cyber
Heavily Leverage
Machine Learning
Partner with Academia
& Government
Embrace a Hybrid
Staffing Model
Commercial Models
That Focus On Outcomes
Focus On “Reduced Risk”
Over “Increasing Security
The
Characteristics
of a Successful
Managed Security
Services Provider
17

3Q20
Key Takeaways
● We’re seeing the early stages of very significant market opportunity
– Security Solutions: SaaS-based startups set to
take share from legacy incumbents
– Security Services: Managed Security Services
represents biggest opportunity
● However, providers need to re-tool, acquire talent and
create ecosystem partnerships
● Providers need to hold themselves to a higher standard –
they are a prime target
● Providers that can help companies create a new cyber operating
model, supported by senior management, are set to succeed
18

3Q20
Summary Outlook
3Q 2020 ISG Index – Summary and Outlook
Global Sourcing Industry Slowly Recovering
3Q20 outperformed expectations due to several form
factors (including mega-deals, restructurings, BFSI, U.K.
industry-specific BPO).
Managed Services
Year-to-date, ITO activity is down slightly with growth in ADM
transactions offset by uneven Infrastructure awards; BPO has
seen slowing activity in contact centers and facilities
management.
As-a-Service
Year-to-date, As-a-Service has steadily increased with IaaS
experiencing double-digit gains across each of the regions;
SaaS market remains in positive territory only in the Americas.
Services Market Forecast
Managed Services healthier than what we
projected; with improving pipelines and
currency tailwinds, we project that ACV will
improve slightly and could accelerate
further if some larger transactions come to
award.
As-a-Service Market Forecast
As-a-Service continues to drive growth as
IaaS providers like AWS, Azure, GCP, Alibaba
and Tencent will benefit from burgeoning
trends in video conferencing, gaming,
remote learning and entertainment. SaaS
could represent a drag on growth as midsize
firms will be key to re-accelerating
momentum.
-6%
2020e
15.5%
2020e
19

3Q20
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3Q
20
Global
ISG IndexTM
Listen by Phone
Steven Hall
President, ISG EMEA
Partner, ISG Digital Services
+44 7384 259676
steven.hall@isg-one.com
Director, Principal
Analyst ISG Research
+1 281 795 2636
stanton.jones@isg-one.com
Stanton Jones
Want to Ask a Question?
Mark Your Calendars!
ISG’s 4Q20 Index Call
Is Scheduled for:
Kathy Rudy
Chief Data &
Analytics Officer
+1 972 653 2153
kathy.rudy@isg-one.com
Partner, Manufacturing,
Practice Lead
+1 727 858 4509
david.lewis@isg-one.com
David Lewis

3Q20
TCV Scorecard
The ISG Index has moved to TCV as the primary measure of the broader market.
We will continue to provide a high-level TCV view of the market via a scorecard analysis.
3Q20
TCV ($B)*
3Q Y/Y
Change
2020 YTD
TCV ($B)*
2020 YTD
Change
Global Commercial Combined Market 34.7 -8% 98.0 -6%
By Type
Managed Services 22.5 -14% 60.2 -14%
As-a-Service 12.2 8% 37.8 10%
ITO 16.9 -12% 48.1 -8%
BPO 5.6 -20% 12.2 -32%
IaaS 5.9 14% 17.8 20%
SaaS 6.4 2% 19.9 3%
By Region
Americas Combined 19.9 4% 50.9 5%
EMEA Combined 11.8 -13% 36.1 -13%
Asia Pacific Combined 2.9 -38% 11.0 -24%
Scorecard
*Contracts with TCV ≥ $25M from the ISG Contracts Knowledgebase™
21

3Q20
the
ISG15 Service & Technology Provider Standouts – Americas
Accenture
AT&T
Atos
Capgemini
Cognizant
DXC Technology
IBM Global Services
Infosys
NTT DATA
TCS
Verizon
Amdocs
Concentrix*
Cushman &
Wakefield
FIS Global *
Genpact
Global Payments
HCL
OptumInsight
Tech Mahindra
Wipro
EPAM Systems
LTI
Mindtree
Mphasis
Sutherland
TTEC
Unisys
Virtusa
Birlasoft
CSG Systems
Ensono
EXL
Globant
Persistent Systems
As-a-Service Market
Amazon Web Services
Google
Microsoft
Salesforce
Adobe Systems
Equinix
ServiceNow
VMware *
Workday
Allscripts
Autodesk
Digital Realty
Rackspace *
Twilio
UKG
Coresite
Crowdstrike *
CyrusOne
Datadog *
Docusign
QTS
RingCentral
Snowflake
Computing *
Zoom Video *
22

3Q20
the
ISG15 Service & Technology Provider Standouts – EMEA
Accenture
Atos
BT Group
Capgemini
Cognizant
DXC Technology
IBM Global Services
Infosys
NTT Data *
TCS
Amdocs
Arvato *
Bechtle
Computacenter
HCL
Orange Business
Services
Serco *
Sopra Steria
Tech Mahindra
T-Systems
Wipro
Asseco
EPAM Systems
JLL
LTI
Mindtree
MITIE
Mphasis *
Sutherland *
TietoEVRY
Unisys
adesso
Coforge
Digita
EXL
HGS
Kapsch Group *
NNIT A/S
Persistent Systems
WNS
As-a-Service Market
Amazon
Web Services
Google
Microsoft
Salesforce
SAP
Adobe Systems
Equinix
ServiceNow
VMWare
Autodesk
Digital Realty *
Dropbox *
Rackspace *
Sage *
Atlassian
DocuSign
OVH
Veeva Systems
Visma
Zendesk *
23

3Q20
the
ISG15 Service & Technology Provider Standouts – Asia Pacific
Accenture
Capgemini
Cognizant
DXC Technology
IBM Global Services
NTT Data
Ricoh *
TCS
Amadeus
Amdocs
Genpact
HCL
IT Holdings (TIS)
ITOCHU Techno-
Solutions (CTC)
Nomura Research
Institute
Serco *
Sodexho
Tech Mahindra
T-Systems
Wipro
Digital China
Neusoft
Nihon Unisys
SCSK
Sutherland
transcosmos
TTEC
Unisys
21Vianet *
Beyondsoft
ChinaSoft
Data#3
Empired
Fuji Soft
PLDT *
Relia
Taiji Computer
As-a-Service Market
Alibaba
Amazon Web
Services
China Telecom *
Google
Microsoft
Salesforce
Tencent
Adobe Systems
Equinix
ServiceNow *
Akamai *
Autodesk
Digital Realty *
Dropbox *
Sage
Twillio
Atlassian
Cloudera *
Crowdstrike *
Kingdee
Slack *
Veeva Systems
24

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ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and
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of the top 100 enterprises in the world, ISG is committed to helping corporations, public
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capabilities based on the industry’s most comprehensive marketplace data.

3Q 2020 Global ISG Index™

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3Q 2020 Global ISG Index™